Embed Size (px)
Citation preview
Project Value Report
August 2013
2
Contents
Note from the CEO……………………………………………………………………………………………………………………………………3
Background……………………………………………………………………………………………………………………………………………….3
Research Methodology………………………………………………………………………………………………………………………………4
The discussion guide…………………………………………………………………………………………………………………………………5
Key findings identified………………………………………………………………………………………………………………………………6
Review of other professional bodies………………………………………………………………………………………………………10
Departmental plans based on Project Value insights…………………………………………………………………………….11
Why is it important for FPI to protect the CFP® mark……………………………………………………………………………12
Conclusions…………………………………………………………………………………………………………………………………………….13
3
Note from the CEO
FPI would like to thank its members for their continued
engagement with the Institute; your feedback is highly
appreciated and will be incorporated into our action plans. FPI
recognise their professional members as the key contributors of
growth for the Institute. Project Value has helped shed light on
areas where improvement is needed and we are conscientiously
addressing these areas. Whilst some concerns can be dealt with in
the immediate future, others will take time and will have to be
meticulously managed. We will make sure that members are
informed of all developments.
Background
The FPI conducted a study earlier this this year known as the Member Loyalty Survey. The aim of the
study was to investigate the key drivers of loyalty amongst FPI’s key stakeholders namely CFP®
professionals. The Member Loyalty Survey study revealed that FPI needs to focus on creating greater
value in professional membership.
It was these findings that initiated Project Value. FPI plans to launch a unique value proposition for
their professional members. The unique value proposition aims to strengthen the current membership
benefits and drastically improve on some of the known inefficiencies. To fully embrace the unique
value proposition, FPI will develop and launch a revamped benefit programme. Prior to the launch,
the Institute needed to consult with their professional members and industry peers. Qualitative and
quantitative research is key in assessing the needs of the members and identifying the various growth
challenges the professional body faces.
In a nutshell Project Value aimed
a) To attain a detailed understanding of FPI’s reputation amongst varies stakeholders.
b) To investigate what professional members understand to be value and their unmet
expectations from the professional body
c) To identify insights and opportunities and also reveal credible insights of concept ideas of
suitable benefits
Godfrey Nti
CEO
4
Methodology
To thoroughly assess and support the research objectives, Project Value employed a qualitative and
quantitative research methodology.
The initial stages of Project Value started with an online survey where all FPI members were invited
to complete a brief questionnaire. A response of 361 online respondents was achieved, and from
those 60 members were identified to participate in focus group discussions, one on one interviews or
telephonic interviews. FPI wanted to achieve a broad representation of who the organisation serves
such as independents and corporates, practicing and non-practicing, brief year of service and long
tenure in the financial industry and the diverse areas of specialisation to name a few screening
standards.
Project Value Phase 2 was an online questionnaire that achieved a response rate of 608 members.
During phase 1 the Institute identified thirty member expectations and thereafter wanted to narrow
it down to the top ten. The insights derived from both phase 1 and 2 has formed the reference to
current plans and also assisted in forming new strategies that strives to meet the needs of members.
5
The discussion guide process
A discussion guide was designed to address the key elements of Project Value’s objective. It was important to that the brief two hour focus group covered the critical discussion points that were relevant to members.
•Analysis of the current membership benefits
•Awareness and response to the LexisNexis online financial and legislation news worth R2000!
Value
•Attitudes towards the CPD policy
•Review of FPI CPD events
•Motivation for attendance and non-attendance to FPI CPD events
CPD
•Complexities and rewards of the financial planning career
•Core values of the financial planning profession
•Success indicators of a financial planner professional
The financial planner
•How FPI can recognise me as a financial planner
•Relationship shared with FPI
•The FPI reputation
The FPI reputation
•Overall evaluation of communication received from FPI
•Awareness of MYMONEY123
•Review of strengths of other professional bodies
Communication
•If FPI wanted to retain my membership status, I would advise them to....
•Ways that FPI can strengthen the community of professional network
Community
6
Key findings identified
This section aims to highlight some concerns members have about FPI. We value the constructive feedback that Project Value revealed. The Institute is eager to provide comment and clarity to the misconceptions that our professional members have about the FPI.
Key concerns from FPI members
FPI response
FPI lacking fairness
Current membership benefits of
FPI are driven by big corporates.
If they (corporates) are funding
the FPI they want their pound of
flesh and they will use the
Institute as they deem fit. Money
received from corporates dictate
FPI’s strategy.
FPI is an independent professional body with no ties to
corporate companies. Our membership base is split
evenly between members who belong to corporates
and members that are independent. Relationships
between both groups exist naturally. Furthermore
nobody from a corporate sits on the board and only
28% of membership fees are paid by employers.
FPI have made it clear that they
are not a lobby group; they don’t
represent us at that level.
As the identity of all professional bodies we strive to
serve a particular profession in our case the financial
planning profession, we serve all the interests of
individuals engaged in that profession, and the public
interest and all various stakeholders.
I have three degrees, my
university does not ask me every
year to pay them R3000 so that I
can retain my qualification
A designation and a university qualification are
somewhat distinct. Members have a designation that
can only be used if you comply with the membership
regulations. A designation is a title that shows your
level of academic qualification and that you are a
current member of a professional body. You are
required to renew or upgrade your membership
annually in order to retain the usage of the
designation. The CFP® designation shows employers
and clients that you actively keep your professional
knowledge up to date, adhere to high ethical codes
and boosts your credibility
FPI is not doing enough public
awareness initiatives Since 2011 to 2012 there has been tremendous growth
of 251% in spend of marketing from R782 955 to R2 748 849 this amount will further escalate this year. FPI Consumer initiatives such as MYMONEY123, Financial Planning Week, Retirement Expo, Gordon Institute of Business Science Expo, Sci- Bono Finance Week, and JSE Literacy Day are used to raise awareness. Other marketing initiatives are in place and proactively used. The Institute will continue to strive to make the most of the resources and capacity at its disposal.
7
Key concerns from FPI members FPI response
FPI lacking in fairness continued
FPI is not frugal with revenue generated
from FPI membership annual fees. They
are flying overseas and awarding fat
salaries to staff members.
As an affiliate of FPSB, FPI attends meetings
that are held overseas. Part of the expenses of
the trip is also subsidised by FPSB. The meetings
occur twice a year and ultimately the benefit of
the attendance cascades to the members, any
changes and discussions that influence the CFP®
designation must be in the best interest of FPI
members.
Revenue generated from membership fees may
not be the only source of revenue however is
the key contributor. The annual general meeting
is a great opportunity for members to witness
how expenses are allocated; the financial
statements are also available on request.
FPI currently has 47 staff members of which 9 are temporary employed. In terms of the awarding of salaries, the Institute awards market related salaries in accordance with the west rand region where head offices are based.
FPI need to create a platform for
members to engage FPI recognise the need for members to form a
stronger community and also engage with like-
minded individuals. Consistent with the FPI
website revamp the Institute plans to launch a
unique online forum that will be moderated by
FPI, however, created for members. The open
platform will allow members to connect,
engage, ask questions and share ideas.
8
Key concerns from FPI
members
FPI response
Unknown FPI benefits
I am unsure about the benefits I
receive as an FPI member FPI has designed a value proposition document listing all
benefits that our members receive to download the
document click here.
What is the LexisNexis benefit? In the beginning of 2010 FPI introduced the free
subscription to the LexisNexis online Financial and
Legislation News worth over R2000.This includes FAIS and
FICA legislation and notices. The benefit is also a useful for
members prepping for regulatory exams.
What is The Financial Planner
magazine? The Financial Planner magazine is FPI’s magazine, it is
distributed quarterly and free to all FPI members. By
reading the Financial Planner magazine you qualify for 2
CPD points. All members receive the digital copy of
magazine, if you would like to receive the hard copy by
post please email your request to
FPI need to create synergies with
other professionally aligned bodies Currently FPI has an MOU with SAIT that afford FPI
members a 50% discount in SAIT membership fees. FPI
members also benefit from the MOU established between
FPI and FISA. The Institute will continue to form
partnerships with various professional bodies in order for
our members receive value as professionals.
FPI communication channels
The FPI website requires a overhaul
The website is probably one of the most critical forms of
communication between FPI and the members. The
overhaul is scheduled to be completed by Q4 2013. This
will be done to allow ease of navigation, intuitiveness,
simplicity of uploading CPD points and ease of locating
cutting edge industry information.
In the future, we also hope to provide members with a
state of the art library archive with articles segmented into
different areas of specialisation.
9
10 most critical expectations from FPI members
1. Educate / make consumers more aware of what the CFP® designation represents 70%
2. FPI CPD events must be more affordable 67%
3. Remain committed to maintaining professional standards 59%
4. Communicate legislative issues in real time 58%
5. Make regulatory compliance convenient by enabling all necessary templates, guidelines and toolkits available on the FPI website
57%
6. Offer free FPI CPD events occasionally (quarterly basis) 53%
7. Elevate the value of a CFP® designation 51%
8. Arrange discounts on industry textbooks, practice manuals and publications 47%
9. Provide guidance on compliance and practice management 47%
10. Have greater media presence 43%
Key concerns from FPI
members
FPI response
FPI CDP policy and events
FPI CPD events are not held outside the
main regions of Johannesburg, Durban
and Cape Town
FPI held CPD events in the Eastern Cape (PE and EL) during
the month of July. FPI will continue to seize opportunities
to serve regions outside the main regions. In the sentiment
of giving back to members the Institute held the two
abovementioned events without profit endeavours. The
frequency of these events will not occur as much as FPI
would like however the value of them taking place is to
allow FPI members living outside the main regions to also
experience the new and improved FPI specialised events. The FPI convention is expensive for
members residing outside the main
regions
Due to 50% of membership residing in Gauteng, the
decision to hold the annual convention was for ease of
logistics. This was also to help logistics of exhibitors flow
seamlessly. FPI is working towards assisting regions outside
Gauteng feels part of the convention by offering DVDs of all
the activities. We also understand the major costs involved
in attending the convention and even though our influence
is limited when it comes to costs outside the convention
fee we do empathise and have tried to lower the
associated costs by negotiating specialised accommodation
rates with hotels close or within a walking distance to the
Sandton Convention Centre.
Base size: 608 - Project Value Online survey phase 2
10
What we have learnt from other professional bodies
Project Value conducted one on one interviews with SAIPA and SAICA to gain knowledge on their strengths to able to benchmark ourselves and cease opportunities of growth in learning.
Membership of other professional bodies
None 62%
Other 14%
FIA- Financial Intermediaries of Southern Africa 10%
SAIT - South African Institute of Tax Practitioners 4%
FISA – Fiduciary Institute of South Africa 3%
IISA-The Insurance Institute of South Africa 2%
IoDSA - The Institute of Directors in Southern Africa 2%
PRAPA- Professional Risk Analysis Practitioner Association 2%
SAICA- South African Institute of Charted Accountants 1%
SAIPA- The South African Institute of Professional Accountants 1%
SAIBA - South African Institute of Business Accountants SAIBA - South African Institute of Business Accountants
1%
Competitive benefits provided by other professional bodies as stated by FPI members, revealed in the Project Value Online survey phase 2
The professional body demonstrates evidence of highest ethical standards being maintained
e.g. by communication of disciplinary action against members transgressing ethical codes and
standards.
Provide a well promoted designation that is recognised and known to consumers and
prospective employers.
Offer affordable or free CPD events.
Global conferences with thought leader speakers, including Nobel prize winners.
Represent the interest of members when fighting unfair legislation.
Provide strong technical assistance.
Releases legislative changes in real time.
Access to best-practice literature, research and news from society portal including the web
social media and a research newsletter.
Base size: 608 - Project Value Online survey phase 2
11
Exciting departmental plans based on Project Value insights
Membership
The vision we have is for the CFP® designation to be recognised and widely
known. The FPI understand that we have to work hard to have the financial
planning profession enjoy the same astute as established professions such
as law, medicine and accounting. As the FPI we realise that we cannot
achieve this vision alone and it will take time to be realised, this however
does not deter us from placing our efforts and resources in elevate the
designation. Membership services are committed to offer our members
value and determined to grow the 6000 membership base to a strong
network of professionals. As an Institute our goal is to ensure that more
and more consumers seek the services of a CFP® professional and that they
will readily identify competent trustworthy financial planners who uphold
the highest ethical standards. Project Value has helped us to identify the
needs and interest of our members and we will continue to build from the
knowledge gained.
Technical
The Technical team and the Industry Sector Group (ISG) committees have
been working diligently at formulating toolkits that will ultimately enhance
members’ competency. Plans are in place to launch toolkits; toolboxes,
checklists, guide lines and templates in Q4 2013. The aim of these
resources is to assist members in keeping up-to-date with their knowledge
and thereby also ensuring that the information they are privy to is relevant.
The findings of the Technical survey assisted in enlightening FPI to know
exactly where we can be focus in supporting members. The toolkits will
only be available to FPI members and of course be FPI branded.
Another initiative that the Technical department is excited to announce is the Technical Update that will
formally launch in Q1 of 2014. The online newsletter communication will be a stand-alone correspondence
which aims to help members keep abreast of developments in the financial planning world. The Technical
Update will contain interesting pieces of reading material of case law articles, topical issues and topical
articles. In addition to that, the Technical Update will publish frequently asked queries received via the
technical inbox. The queries and responses will be posted on the FPI website.
Looking ahead, we are also passionate about assisting members through the transition phase of
managing a fee base practice. A tool is being devised which will give members direction, this will not
be at all prescriptive but will serve as a guideline. The Technical team is also passionate in assisting
members to remain compliant and also in providing practice management assistance. Research and
the initiation of dialog amongst various stakeholders’ such as the ISG, members, other professional
bodies, consumers, authorities and FPI staff, will contribute to moving forward.
David Kop, CFP® Senior Manager Policy and Research
Anthony Campher, CFP® Head: Business Development and Membership Services
12
Centre of Professional Development
Centre of Professional Development recognises the need for
members to develop their skills and also their quest to acquire CPD
points. Since the introduction of specialised CPD event the Centre
of Professional Development has experienced tremendous growth.
Organising high quality events with content that carries the utmost
relevance is our mandate. We will continue to improve the process
of the selection of keynote speakers and have heard your advice to
grow the pool of presenters.
From 2014 we will specify the level of expertise each event is suited to in our marketing material.
There will be three levels; entry, intermediary and master class. This will assist members in selecting
their preference of learning and be satisfied with the level of knowledge gained.
Legal and Compliance Services
A CFP® professional’s use of the CFP® marks identifies that he or
she has met rigorous ethics, competency and professional practice
standards to deliver quality financial planning in South Africa. FPI
endeavours to actively promote the correct use of the CFP® mark
and takes decisive action in instances unauthorised use. A number
of Quick Reference Guides have been developed and distributed
widely to aid in the promotion and protection of this invaluable
trademark.
Since the beginning of 2013 we have identified 74 cases of unauthorised use of mark, we have taken
action against the transgressors and continue to monitor the few outstanding corrections.
The main objective of FPI’s disciplinary proceedings is to protect the public; to maintain public
confidence in the financial planning profession; and to declare and uphold the highest standards of
conduct among FPI professional members. Some of the new features in the regulations include
provisions relating to consent orders, costs and publication of the outcome of proceedings. The
regulations are binding on all professional members of the FPI, irrespective of their designation.
Adele Whyte Project Manager
Adv. Jacqui Grovè Manager: Legal and Compliance Services
13
Conclusions
Once again FPI thanks all members for their time and insight to Project Value. The Institute has
thoroughly enjoyed and appreciate all interactions throughout the course of the project. Please do
look out for future communications on FPI developments. If you have any queries concerning the
report please feel free to write to us at [email protected]
